The first look at U.S. GDP for the second quarter has just arrived this morning: Economists expected 2.6% growth to be reported, and it looks like forecasts were a bit ambitious – the US economy grew at just 1.2%. Another piece of important economic data this morning: The reading from the University of Michigan’s consumer sentiment survey will also be closely watched. The preliminary report for July showed a 4.3% month-on-month drop, analysts expect a slight improvement for the final survey report (SA).

The gains keep piling up for Facebook as it passed Berkshire Hathaway's valuation this week to jump into 5th place on the list of most valuable companies in the world. Apple, Alphabet, Microsoft and ExxonMobil are now the only companies with a larger market cap than the social network juggernaut. Facebook's market cap has increased to just under $364B after this week's vibrant post-earnings rally (FT).

S&P 500 futures are down 4 and NASDAQ futures are up 8. MSCI International Index is up 3/10 of a %.

Nike employs a record 70,700, up from 62,600 last year. That includes 10,700 at its headquarters in Beaverton. Intel remains Oregon's largest private employer with 19,500 employees. (PBJ)

Verizon will acquire Yahoo for $4.8 billion in cash. The purchase could boost Verizon's AOL internet business, which the company acquired last year for $4.4 billion. Together, AOL and Yahoo would have about 5% of the digital ad market. This marks the end of Yahoo as an operating company, leaving it with only a 36% stake in Yahoo Japan and a 15% interest in Chinese e-commerce company Alibaba. (Reuters)

Kimberly-Clark reported second-quarter profits of $566 million, after a loss of $305 million a year ago. Sales hit $4.6 billion during the quarter, compared with $4.6 billion a year ago. Shares of Kimberly-Clark are up 5.8% in the year to date. (Market Watch)

The Financial Times says Apple will sell its one billionth iPhone this week. The first iPhone was sold in 2007.

S&P 500 is flat and the NASDAQ is flat. MSCI International Index is up 0.20%.

Umpqua Holdings the state's biggest bank reported quarterly profits of $69.2 million. The bank posted $283.9 million in sales. Assets hit a record $24.1 billion, up 6% from a year ago. Deposits climbed to $18.3 billion. (PBJ)

Home resales rose in June 1.1% to an annual rate of 5.57 million units, their fastest pace in more than nine years. Mortgage rates fell in June to their lowest levels since 2013. The number of unsold homes on the market, already low, in June dropped 0.9% to 2.12 million units. The median house price rose 4.8% from a year ago to a record $247,700 last month. (National Association of Realtors)

AT&T reported quarterly earnings of $0.72 per share on revenue of $40.5 billion. The acquisition of DirecTV continues to drive the company’s revenue. DirecTV has added nearly one million subscribers in the last year, including 342,000 during the second quarter. (DBJ)

Starbucks reported quarterly earnings of 49 cents per share, matching expectations. Revenue disappointed. Starbucks saw a 4% percent increase in same store sales in both the U.S. and globally. (CNBC)

Join us this weekend for Financial Focus Radio when we will talk life insurance and bonds.

S&P 500 is up 2 and the NASDAQ is up 5. MSCI International Index is up 0.31%.

Intel, Oregon’s largest employer reported solid earnings of 59 cents per share on revenue of $13.5 billion. Client computing segment revenue fell 3% while the data center group revenue was up 5%. Intel is moving away from the PC market and to data centers and the Internet of Things as profit-growth drivers. (The Street)

As the Affordable Care Act – Obama Care – weighs on consumers, Oracle is accusing Oregon Attorney General of misconduct in the Cover Oregon debacle.
Oracle says Attorney General Ellen Rosenblum has undertaken what it describes as “inexcusable” conduct. In particular, Oracle says the Department of Justice has concealed evidence. (PBJ)

Anheuser-Busch InBev and SABMiller got conditional approval from U.S. regulators for their $107 billion merger, leaving China as the only country that still needs to give its approval. AB InBev expects the deal to close before the end of the year. (NY Times)

Komatsu is buying U.S. mining-equipment maker Joy Global for $2.89 billion. The Japanese construction machinery maker is paying $28.30 per share an 18% premium over the company's closing price on Wednesday. (Market Watch)
S&P 500 is down 2 and the NASDAQ is up 2. MSCI International Index is down 0.31%.

The stock market remains on a tear. The Dow is on its longest winning streak since March 2013 and is on track for its ninth straight session of gains. The Dow and S&P 500 stand at record highs. The tech laden Nasdaq remains 3.5% away from its record close. (CNBC)

Microsoft posted quarterly profits per share of 69 cents on revenue of $22.6 billion. Microsoft returned $6.4 billion to shareholders last quarter through dividends and buybacks. The Windows operating system remains the company's profit driver. The decision to change Microsoft Office into a subscription-based cloud offering with Office 365 has been widely hailed as a savvy move that generates a consistent stream of recurring revenue. Part of Microsoft's transformation has been its pivot away from the PC market. Surface revenue grew 9% in the quarter. (USA Today)

International consumer products giant Unilever is buying Dollar Shave Club for $1 billion in cash. The company was started by Michael Dubin from his apartment in 2012. Dollar Shave Club expanded from selling razors online for $1 apiece to offering products including bathroom wipes. (CNBC)

S&P 500 is up 7 and the NASDAQ is up 24. MSCI International Index is up 0.67%.

It's earnings season again! More than 90 of the biggest U.S. companies will report results this week, giving a clearer picture of what's expected to be the fourth straight quarter of declining profits. Based on analysts' forecasts for companies in the S&P 500 index, Thomson Reuters predicts adjusted earnings per share for the second quarter will be down 4.7% from a year earlier, following a 5% drop in Q1. (SA)

Meanwhile, several big pieces of news out of Europe today: the Italian government is working on plans to set up a €50B bad bank bailout. The scheme could help clean up the nation's stricken lenders, but also puts the country on a collision course with the EU, which does not want taxpayers bailing out banks before private investors take a hit. Across the Mediterranean, in Turkey today, stocks are headed for their worst loss since 2013 following a failed coup attempt. (SA)

Finally, deal activity is remaining strong: SoftBank (the Japanese owner of Sprint) has acquired chip designer ARM Holdings for ($32B), as the Japanese telecoms giant bolsters its presence in the growing Internet of Things sector. The deal will see SoftBank pay a 43% premium to ARM's closing price last week, making the deal the largest ever purchase of a European technology company. (Ft)

S&P 500 futures are up 3 and NASDAQ futures are up 6. The MSCI international index is up just under 1/2 a %.

Surprising everyone the Bank of England held interest rates steady despite guidance that policy easing could be forthcoming in the wake of Brexit. (Bloomberg)

Yum Brands owners of Pizza Hut, Taco Bell and KFC, reported a 9% rise in profits last quarter. Sales were $3.01 billion. The company will spin off its China restaurants by the end of 2016. Its China division has an estimated value of $8 billion and is about half of their sales. Yum shares are up about 17% year-to-date. (Yahoo Finance)

JPMorgan Chase posted second-quarter earnings of $5.67 billion as trading revenue jumped. Chase is the largest U.S. bank by assets. The bank's two largest divisions did well. Consumer banking division saw revenue climb 13% from a year earlier. The investment banking division saw fixed income trading revenue soar 35%, while revenue from stock trading rose 2%. (AP)

J.M. Smucker Company’s quarterly profits rose by 25% compared to the same quarter a year ago. The company derives its revenue from its four segments: Coffee, Consumer Foods, Pet Foods, and Foodservice. The U.S. Retail Coffee and U.S. Retail Pet Foods segments contributed a combined 59% to SJM’s total revenue. The Dunkin’ Donuts brand generated $220 million in retail sales. (Market Realist)

S&P 500 is up 16 and the NASDAQ is up 31. MSCI International Index is up 1.13%.

Yesterday the Brexit Rally continued in earnest. The Dow posted its first record high in over a year. The S&P 500 set a record high for the second day in a row. The Nasdaq went positive for 2016 for the first time all year with its ninth gain in 10 sessions. (CNBC)

Wholesale inventories rose marginally in May by 0.1%. Inventories have weighed on Gross Domestic Product since the third quarter of 2015 as businesses sell piles of unwanted merchandise. Businesses accumulated record inventory in the first half of 2015, which outstripped demand. In May, wholesale stocks of petroleum increased 3.2%. Auto inventories fell 1.9%, the biggest decline since September 2013, while farm products inventories soared 5.9%. (Reuters)

Lower interest rates pushed total mortgage application volume up 7.2% last week. Refinance applications were entirely behind the jump, increasing 11%, to the highest level in three years. Refinances are up nearly 65% from one year ago. The average interest rate for 30-year fixed-rate mortgage decreased to its lowest level since May 2013, 3.6%. (Mortgage Bankers Association)

The S&P 500 is up 2 and NASDAQ is up 6. The MSCI International Index is up 0.23%.

The S&P 500 posted a new record closing high yesterday and is looking to do it again today. It was the first new high since May 2015. (FBN)

The Index of Small Business Optimism rose almost one point in June to 94.5 according to the National Federation of Independent Business. At 94.5, the Index remains well below the 42-year average of 98. Four of the 10 Index components posted a gain, three declined, and three were unchanged. The biggest increase was Expected Business Conditions.

Two high tech giants are joining hands and working together. Facebook and Microsoft are announcing a deal today for Facebook to use Microsoft's Office 365 cloud software. (WSJ)

Starbucks is increasing prices 10 to 20 cents on select sizes of brewed coffee, and 10 to 30 cents on espresso beverages and tea lattes today. The average customer order is expected to be about 1% higher. (CNBC)

All of you business people who are interested in learning more about efforts to elect a small business and pro jobs Bend City Council check out “What’s Brewing” tonight at 5pm sponsored by the Bend Chamber of Commerce. To register go to bendchamber.org .

The S&P 500 is up 9 and NASDAQ is up 21. The MSCI International Index is up 1.41%.

Call it the Brexit rally? The S&P 500 will open at record highs this morning, after Friday's strong rally on the stronger-than-expected June jobs report. (CNBC)

Alaska Airlines is one of eight airlines that could make flights between the U.S. and Cuba. They could begin Cuban flights as early as this fall. Others are American Airlines, Delta Air Lines, Frontier Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines and United Airlines. These flights will only be available from airports in Atlanta, Charlotte, Fort Lauderdale, Houston, Los Angeles, Miami, Newark, New York City, Orlando, and Tampa. (PBJ)

The June jobs report says wage growth hit 2.6% for the past year, the highest level since the Great Recession. (US Dept. of Labor)

We have heard about this countries impact on business a lot lately. Kimberly-Clark is shutting down its operations in Venezuela due to a slumping economy, which has resulted in significant consumer inflation as well as goods shortages. (CNBC)

S&P 500 is up 5 and the NASDAQ is up 20. MSCI International Index is up over 1%.

Oil is down 32 cents at $45.09 a barrel. U.S. crude suffered its worst week since February last week, tanking more than 7%. The average price of gas has dropped 7 cents over the past three weeks to $2.29 per gallon. That is 52 cents lower than a year ago. (Reuters)

The US economy added 287,000 jobs in June, 265,000 were added in the private sector. Average job growth for Q2 was 145,000 jobs per month. The unemployment rate is 4.8%. (Fox Business News)

Starbucks will increase the price on some drinks on Tuesday. Some prices could go up by as much as 30%. Starbucks last raised its prices by 5 to 20 cents in July 2015. The Seattle-based company has increased prices every summer since 2013. (CNNMoney)

Helen of Troy reported quarterly profits of $19 million. The personal and household products company had sales of $348 million, up 0.8%, which includes a 1.1% decline from Venezuela and a 0.5% decline from foreign currency. Hydro Flask had sales of $14.4 million, ahead of expectations. Helen of Troy shares are up 9% since the beginning of the year and are up 5% in the last 12 months. (AP)

Under the category – “you have to pay the money back” -- Uber has raised $1.15 billion after taking out its first high-yield loan – also known as junk bonds -- bringing its total capital raised through debt and equity to $15 billion. (WSJ/CNBC)

Join us this weekend for Financial Focus Radio when we will try to pop the growing bond bubble.

S&P 500 is up 11 and the NASDAQ is up 17. MSCI International Index is up 1%.

PepsiCo's quarterly profits increased almost 4% topping Wall Street expectations. Sales declined about 4% to $15.4 billion, hindered by a stronger dollar and its Venezuelan operations. New drinks such as Propel flavored water and Naked Cold Pressed juice, and snacks under its "Simply" brand helped sales. Revenue from the Frito-Lay business, which includes Doritos, Fritos, Tostitos and Cheetos rose 3%. PepsiCo raised its full-year earnings to $4.71 per share. Shares are up over 2% in early trading, reaching an all-time high. (AP)

In June, employers planned to layoff 38,536 jobs. Employers announced 313,754 layoffs in the first six months of 2016, up 9% from the same period last year. Payroll reductions slowed between the first and second quarters. Second-quarter job cuts totaled 132,834, down 27% from the 180,920 layoffs announced in the first quarter.

S&P 500 is flat and the NASDAQ is flat. MSCI International Index is up 0.29%.

Oil is up $0.50 at $47.95 a barrel. The American Petroleum Institute says U.S. crude stockpiles fell by 6.7 million barrels last week, declining for a seventh week in a row. (CNBC)

Bonds have been in rally mode ever since the Brexit vote. The U.S. 10-year Treasury closed yesterday at a record low of 1.38% and currently sets at 1.33%. Meanwhile Japan's 20-year government bond yield turned negative for the first time ever. (CNBC/Marketwatch)

New orders for factory goods fell in May by 1.0% after two straight months of increases. Manufacturing accounts for 12% of the US economy. Orders for transportation equipment fell 5.7%. Defense orders tumbled 28.1%. Inventories of factory goods slipped 0.1%, as companies reduced inventories. Inventories have declined in 12 of the last 13 months. Unfilled orders at factories have increased in four of the last five months. (Commerce Department)

Walgreens, the largest U.S. drugstore chain, posted profits of $1.1 billion last quarter a year earlier they earned $1.3 billion. Revenue rose to $29.5 billion.
Total sales at retail pharmacy locations in the U.S. climbed 3.7%. Internationally total sales fell 2.3% but increased 3.4% on a constant currency basis. Walgreens says its acquisition of Rite Aid is still expected to close in the second half of the year. (AP)

The maker of Twinkies, Hostess, has entered a deal with Gores Holdings to go public with an expected value of $2.3 billion. (Reuters)

S&P 500 is down 10 and the NASDAQ is down 29. MSCI International Index is down 1%.

Oil is down $0.50 at $46.13 a barrel.

Gold is up $15 at $1373 a Troy ounce. Gold is at two year highs. (Reuters)

The ISM manufacturing index rose to 53.2 in June up from 51.3 the month before. The employment index rose to 50.4 from 49.2 a month earlier. Construction spending was down 0.8%. May construction spending was held down by a 2.3% drop in public construction spending. State and local construction tumbled 3.0%, and federal construction spending rose 7.5%. (Reuters)

Oregon’s Schnitzer Steel reported quarterly earnings of $0.41 per share. This compares to losses of $0.31 in 2015 and $1.48 in the first quarter of 2016. The company successfully executed to reduce costs and improve productivity led by their Auto and Metals Recycling business delivering its best quarterly operating income per ton since 2011. The company saw improved market conditions across all sectors. (Business Wire)

Goldman Sachs has directed its workforce at its asset management business, cut spending following 15 straight months of outflows from its mutual funds and underperformance in its flagship bond fund (Financial Times)
Jack Daniel's Distillery is sponsoring a whiskey-driven scavenger hunt. It will scatter barrels in more than 50 countries over 90 days. Special barrels will be hidden at "historic and cultural sites." (USA Today)

S&P 500 is down 13 and the NASDAQ is down 25. MSCI International Index is down.

We start third quarter trading today, but before we turn the page let’s look back. The Dow is up about 3% and the S&P 500 up about 2.7% for the year. The Nasdaq is down 3.3% in 2016. The Dow and S&P 500 was up in the second quarter for the third quarter in a row. All that even with the big correction to start the year and the Brexit crisis. After a strong three-day rally, the Dow and S&P 500 have regained over 90% percent of their Brexit-related losses. The stock market is closed on Monday for the long fourth of July holiday weekend. (CNBC)

Social Security beneficiaries will get a projected 0.2% increase in Social Security payments due to inflation. Last year beneficiaries received no increase. (AP)

Join us this weekend for Financial Focus Radio when we will talk your 2017 health insurance premiums with our trusted advisor on such issues, Don Klippenes of Health Insurance Strategies.

S&P 500 is flat and the NASDAQ is flat. MSCI International Index is flat.

Oil is down 10 cents at $48.23 a barrel. In the second quarter, oil gained 26%, the biggest quarterly gain since 2009. (Fox Business News)

Gold is up $15 at $1336 a Troy ounce. Gold is headed for its fifth weekly gain. Gold gained 8.8% in June, its biggest monthly rise since February. (Reuters)